Energy and Resource Societies Urge Immediate Withdrawal of Energy Division from Ministry of Trade, Industry and Energy

Five Academic Societies, Including the Korean Society of Resource Engineers, Issue Joint Statement
"Independent Energy Ministry Should Be Considered as a Medium- to Long-Term Solution"

Yoon Hojung, Minister of the Ministry of the Interior and Safety, and Han Jeongae, Policy Committee Chair of the Democratic Party of Korea, are announcing the results of the 3rd High-level Party-Government Council and the government organization reform plan at the Government Seoul Office in Jongno-gu, Seoul on September 7, 2025. Photo by Yonhap News

Concerns and opposition are mounting across various sectors regarding the government reorganization plan announced by the Democratic Party of Korea and the government, which centers on the establishment of the Ministry of Climate, Energy and Environment. In particular, there are significant worries about the division of energy functions between the Ministry of Climate, Energy and Environment and the Ministry of Trade, Industry and Energy. Following the Korean Nuclear Society, academic societies in traditional energy and resource sectors such as petroleum, gas, and minerals have also issued statements opposing the establishment of the Ministry of Climate, Energy and Environment.

On September 10, academic societies related to energy and resources-including the Korean Society of Resource Engineers, the Korean Society of Exploration Geophysicists, the Korean Society for Rock Mechanics, the Korean Society of Petroleum Engineers, and the Korea Resource Recycling Association-issued a joint statement expressing deep concern over the move to separate energy policy and organization from the Ministry of Trade, Industry and Energy, and urged the government and the National Assembly to immediately withdraw the plan.

In their statement, the societies emphasized that, given South Korea's heavy reliance on overseas sources for most of its energy-including crude oil, gas, and coal-stable and efficient energy supply is the foundation of both economic security and industrial competitiveness.

They particularly pointed out that separating energy policy from industrial policy could lead to serious side effects, including: the loss of a control tower for energy security and supply chain management; delays in energy infrastructure investment; increased burdens on key industries due to higher industrial electricity rates; and weakened negotiating power in trade.

According to the government reorganization plan announced by the ruling party and the government, most energy functions of the Ministry of Trade, Industry and Energy-including energy policy formulation, electricity, hydrogen, and nuclear power-will be transferred to the Ministry of Climate, Energy and Environment. However, resource industry functions such as petroleum, gas, coal, and minerals will remain with the now smaller Ministry of Trade, Industry and Energy. The Ministry of Climate, Energy and Environment will handle nuclear power plant construction and operation, while nuclear power exports will be managed by the Ministry of Trade, Industry and Energy.

In the statement, the societies stressed, "We are now in an era of energy hegemony competition, and the race to secure energy, intertwined with global supply chains, is akin to an invisible war. The government must make strategic and consistent decisions to support industrial competitiveness." They further emphasized, "Stable and affordable electricity is the foundation of industrial competitiveness. Based on a balance between renewable energy, nuclear power, and gas-fired power generation, policy consistency must be maintained, and the expansion of power grids and energy highways should be accelerated to move step by step toward the goal of carbon neutrality."

The societies pointed out, "South Korea relies on imports for 100% of its crude oil and natural gas, and for most of its coal, while 25 out of 33 critical minerals are primarily sourced from China. Such extreme dependence could lead to the collapse of the entire industry in the event of geopolitical risks." They also expressed concern that energy security policy is directly linked to industrial demand, and that separating industrial and energy policy would sharply reduce effectiveness.

They further noted that if the comprehensive role of the Ministry of Trade, Industry and Energy-which encompasses both industrial and energy perspectives-is weakened, important trade negotiating power will also be diminished.

The societies urged the government and the National Assembly to immediately reconsider the organizational separation, and stressed that, in the medium to long term, rational and practical alternatives should be sought, such as reorganizing the Ministry of Climate, Energy and Environment or establishing an independent energy ministry.

The societies stated, "South Korea's industry and jobs are built on stable and efficient energy, and energy and industry can never be separated." They called on the government and the National Assembly to immediately withdraw the reorganization plan that would transfer the energy organization of the Ministry of Trade, Industry and Energy to the Ministry of Environment, and to come up with rational alternatives that enhance national competitiveness.

This content was produced with the assistance of AI translation services.